The Impact of Government Loan Expansion on Post-Graduation Outcomes: A Longitudinal Study

Authors

Mark Johnson, Brigham Young University
Taylor Nadauld, Brigham Young University

Keywords

government loan expansion, post-graduation outcomes, longitudinal study

College

Marriott School of Business

Department

Accountancy

Abstract

The availability of higher education is linked to more affluent and prosperous societies. In the United States, policy makers have attempted to make post-secondary education readily available through grants and loans. In the past two decades student loans have exploded to become the second largest segment of consumer debt nationally. The effect that higher loan balances has on students has not been examined extensively. We perform a statistical analysis to demonstrate that when the government increases the supply for federal loans, students take on more credit to pay off more expensive forms of credit. All other effects of loans on post-graduation outcomes that we looked at were not statistically significant.

Recommended Citation

Johnson, Mark and Nadauld, Taylor (2017) "The Impact of Government Loan Expansion on Post-Graduation Outcomes: A Longitudinal Study," Journal of Undergraduate Research: Vol. 2017: Iss. 1, Article 254.
Available at: https://scholarsarchive.byu.edu/jur/vol2017/iss1/254